Are you a contractor?

Join our network and attract real clients!

Table of Contents

Rising Wood Prices: What You Need to Know

Rising Wood Prices: What You Need to Know

Advice for contractorRising Wood Prices: What You Need to Know

It’s undeniable that the pandemic we're facing has been the source of many upheavals, both socially and economically.

As we all know, several sectors of the economy have been greatly affected by this situation and unfortunately, the construction sector hasn’t been spared. Now, the recent fluctuations in the price of lumber remind us that this situation’s clearly not yet resolved.

Rising lumber prices: the factors involved

Rising lumber prices

Source: Canva

As the price of lumber now averages an approximate rate of $1260 per thousand-foot board measure, its high rate remains a major issue for those involved in the construction industry.

This price is even higher than the 2021 average, a year in which new highs were reached. This increase in lumber prices greatly complicates the situation for construction contractors, who’re already suffering the negative impact regarding a lack of qualified labour. So, what exactly are the factors involved to explain this new increase?

1- The slowdown in production in British Columbia

Regarding the factors involved in explaining the current situation, let us first note the slowdown in production in British Columbia due to the major floods and fires that this province has dealt with in recent months.

Let's not forget the damage caused by the pine beetle, as this insect has managed the sad feat of devastating forests covering more than 15% of the province’s area, in addition to destroying approximately 50% of the lodgepole pines that they found on its territory.

2- The increase in US countervailing duties

Secondly, it would be difficult to deny the considerable impact of the increase in countervailing duties imposed by the American economy, motivated by what our neighbour to the South calls unfair competition on the part of Canada in regards to the American forestry industry. It should be noted that this increase is considerable and that it even goes so far as to double the former rate (from 9 to 18%).

As the president of the forest committee of the Union des municipalités du Québec points out, the changes to the forest regime were put in place in an effort to resolve the conflict between the two countries. Unfortunately, it seems that the efforts invested in this process did not yield the expected results and now the compensatory costs are skyrocketing, as is the price of lumber.

Some large Canadian companies such as Resolute Forest Products will pay a much higher rate, around 30%. Although the tensions surrounding the timber trade between Canada and the United States have been public news since 2017, its impact is all the more considerable since the Canadian economy is in a worse position than last year.

3- The increase in cases caused by the arrival of Omicron

Due to the greater transmissibility of the Omicron variant and the rapid increase in the number of cases, it should also be noted that a slowdown in production is certainly a fear. Although the current situation still doesn’t indicate a problem in this regard, the rapid spread of Omicron casts doubt on the situation.

4- Residential construction on the rise

Let's not forget that residential construction is still very popular, here as well as in the United States. Further, The Madison's Lumber Report states a 12% increase in residential construction in November 2021 compared to the same period the previous year. Whether it’s to build new homes or to undertake renovations, wood is currently in high demand.

Therefore, this unabated popularity increases the demand for lumber, which is accentuated by the need to rebuild the homes destroyed during the natural disasters in British Columbia mentioned above.

As the beginning of the year is often the time when the various intermediaries stock up on wood in preparation for the projects and works that will take place in spring, it’s undeniable that the current demand greatly exceeds the supply.

Good news for Quebec?

Rising lumber prices

Source: Canva

Michel Vincent, an economist at the Quebec Forest Industry Council, maintains that Quebec produces much more wood than it requires (three times more). Supply would therefore not be a concern for the Quebec market, although the situation is not immediately as reassuring for the rest of Canada.

Another interesting fact to note on this subject, the increasingly active presence of Europeans on the American market could very well increase the quantity of wood available. Thus, this new player could eventually help to rebalance the price of lumber, a material whose popularity doesn’t seem about to subside.

Find contracts for your home renovation company

RenoQuotes.com can help you get home renovation contracts. We get requests from clients looking for trusted home renovation professionals just like you. Fill out the form on our homepage (it only takes a few minutes), and you will receive information on how to get new clients for your renovation company through our service.

Get 3 free quotes for your project!

Submit a project and get 3 free quotes!


Last modified 2023-11-07

List of sources


Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Looking for something else?


Table of contents


Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Are you a contractor?

Join our network and receive real leads!

Download the price guide for renovations

We’ll be emailing you the latest market price guide for renovations.



Related articles

The latest industry news, interviews, technologies, and resources.

7 min read

Cynthia Pigeon • 04 Dec 2023

Work-Life Balance: A Struggle Affecting Workforce Retention in the Construction Industry

The working world is undergoing radical shifts, and these changes have without a doubt impacted Quebec’s construction and renovation industry.

8 min read

RenoQuotes.com • 20 Dec 2023

Shining a Light on Innovation with Smart Glass

Now more than ever, windows are paramount features in the construction equation. In fact, due to innovative solutions, windows can control luminosity, regulate heat, prevent condensation, etc. All of this to, in the end, create modular spaces meeting specific requirements. 

5 min read

N/A • 07 Nov 2023

How To Maintain a Wall-Mounted Air Conditioner

Although not all households are able to accommodate a central-air system, during the summertime even they will need a way to stay cool. Luckily the saviour comes in the form of a wall-mounted air conditioner.

5 min read

Cynthia Pigeon • 07 Nov 2023

How to Repair Your Squeaky Wooden Staircase

When you come home late at night, you desperately want to try to minimize the sound of your every footstep so as to not wake anybody up. However, this very mission can be hindered by squeaky stairs that may complicate your end goal. Even throughout the day, there is nothing more irritating than the squeak of the stairs at one’s every step. 

5 min read

RenoQuotes.com • 07 Nov 2023

Our Pro Tips to Successfully Design Your Pool Deck

Buying an above-ground pool means enjoying the best of what the summer season has to offer, and that, on a daily basis. Although such an installation has many advantages, it may seem challenging at first to set up and blend in with your current landscape. However, with a little planning and the right material selection, you can create a design that'll complement your overall décor. As such, your pool is sure to please all generations for years to come.


Looking for a contractor?

Submit a project and get 3 free quotes now!